STATE OF ANDHRA PRADESH Vs. SRI IMMADISETTY VENKATESWARLU

JUDGEMENT

(1.) THIS tax revision case, directed against the order of the Sales Tax Appellate Tribunal, passed on 14th May, 1966, raises a short point as to the competence of the Deputy Commercial Tax Officer to levy penalty in a case where the assessment was initially made by the Commercial Tax Officer.

(2.) THE assessment relates to the year 1962-63 and was completed on 30th March, 1964, by the Commercial Tax Officer, Guntur, as a result of inspection of business premises on 30th January, 1963, and discovery of some incriminating material by the Special Assistant Commercial Tax Officer, Evasions, Guntur. The Commercial Tax Officer estimated the probable suppressed turnover at Rs. 1,33,549 and made his assessment order on the total turnover for the year. But the suppressed turnover determined was reduced to Rs. 44,516 in appeal. After the appeal was disposed of, the assessment file was transferred from the office of the Commercial Tax Officer to the Deputy Commercial Tax Officer, Macherla, because of the change of jurisdiction consequent on certain amendment made in the ANDHRA PRADESH GENERAL SALES TAX ACT, 1957 (hereinafter called "the Act") and the rules framed thereunder. The Deputy Commercial Tax Officer, who became thus seized of the matter, revised the assessment order in terms of the appellate order. Then he started proceedings for levy of penalty. He levied penalty in a sum of Rs. 1,350, which was equivalent to one and half times the tax demanded on the suppressed turnover. The petitioner herein appealed in vain against the order of penalty before the Appellate Commissioner. He carried the matter in further appeal before the Sales Tax Appellate Tribunal. The Tribunal by a majority allowed the appeal on the ground that the levy was bad because the authority which levied the penalty is not the same as that which made the original assessment order. Aggrieved by this order, the State has come to this court in revision.

(3.) THE power to make assessment order and levy penalty is given to the assessing authority by the Act. The term "assessing authority" has been defined in the Act and it means any person authorised by the State Government or by any other authority empowered by them in this behalf to make assessment under this Act. The State Government in this regard in its Notification G. O. Ms. No. 1091, Revenue, dated 10th June, 1957, has provided in clause II as follows :